Brazil’s perceived sovereign risk among investors fell, with the cost of insuring Brazilian bonds for five years falling yet again in the credit-default swaps market after the country’s lower house of Congress voted to back the impeachment of President Dilma Rousseff for breaching budget laws, Reuters reported. The difference between the yields that the Brazilian and US governments pay on their 10-year bond narrowed to 4.31 percentage points late on Sunday, from 4.42 points on Friday. The cost of insuring Brazilian bonds for five years in the CDS market fell for the fourth day in five to 340.7 basis points, near the lowest levels since last August, according to Markit pricing.
